West Asia conflict, LPG crunch push beverage input costs up 15-20%; consumer price hikes loom
Coca-Cola India, PepsiCo and beer majors including United Breweries and Heineken face a 15% rise in aluminium can costs and 20% jump in glass bottle costs as West Asia disruptions hit can imports and LPG shortages curb bottle production. With cans now 25-30% of portfolios, makers signal price hikes — Rs 10 on a Rs 40 SKU — heading to shelves this summer.
What happened
Coca-Cola India · Beverage and beer makers in India face rising input costs this summer as West Asia conflict disrupts aluminium can imports and LPG shortages
Key facts
- 15% can cost rise
- 20% glass bottle cost rise
- 25-30% can portfolio share
- 80% local sourcing
- Rs 40 current price
- Rs 10 hike expected
- 300 ml
- 230 ml
Why this matters
Distressed glass and can converters squeezed by LPG and import shocks become acquisition targets, while backward integration into packaging looks newly attractive for beverage majors hedging structural input volatility.